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Still, a Teva-Barr tie-up appears to pose no major antitrust issues that would scuttle the deal, analysts said.

Teva would also gain a prominent women’s health franchise, including Barr’s major portfolio in generic oral contraceptives. Barr also sells the brand-name contraceptive Seasonique, and the Plan B emergency contraceptive.

Buying Barr would also bolster Teva’s generic franchise in Central and Eastern Europe. Barr jumped into the international market when it acquired Pliva of Croatia in 2006.

Teva would also gain more opportunities for first-to-market generics that can have lucrative exclusivity periods. These Barr opportunities may allow Teva to bridge an expected earnings gap in the next few years, analysts have said.

The total deal value is $7.46 billion plus about $1.5 billion of net debt, the companies said.

Under the terms of the agreement, each share of Barr common stock will be converted into $39.90 in cash and 0.6272 Teva American depositary receipts. Teva expects the deal to close in late 2008.